Sentences with phrase «low valuations of these stocks»

It is interesting to note that it had higher dividend yield than the quality portfolio without additional value screen, due to the lower valuation of stocks.

Similarly, if a banking company is trading at a price to book value of 4x compared to the industry average of 9x, then again the bargain hunters first need to investigate the reason behind the low valuation of that stock before concluding it as a value stock.

Not exact matches

Simply put, a deal that offers participating preferred stock creates a lower implied valuation for your business than a plain vanilla term sheet with no participation feature, because the investors will end up with a disporportionately higher piece of the value created.

The week Albertsons was supposed to price its IPO, Walmart lowered its earnings forecast, dragging its stock valuation and those of its peers lower.

Understand also that the evidence pointing to steep market risk over the completion of this cycle is quite robust, as the valuation criteria in the overvalued, overbought, overbullish syndromes we now observe would be satisfied even if stocks were significantly lower than they are at present.

While stocks have a terminal value beyond a 10 - year period, the effects of interest rates and nominal growth on those projections largely cancel out because higher nominal GDP growth over a given 10 - year horizon is correlated with both higher interest rates and generally lower market valuations at the end of that period.

This stock offers a unique combination of growth potential, strong profitability, and a valuation with low market expectations.

In my view, it is very important to understand that the rally we've seen in stocks was a momentum rally from a deeply oversold low, starting from a very high historical level of valuation, and never generating the favorable trend uniformity which has always appeared prior to past recession lows.

It's important to emphasize that I don't view any of these groups as «undervalued» - even the largest stocks are above historical norms of valuation (with various individual exceptions), and even apparently «low» P / E multiples should be evaluated critically since they're on record earnings.

Even without suggesting that money will move «out of cash and into stocks,» one might argue that relative valuations are too wide, and that stocks should be priced to achieve lower long - term returns, given the poor returns available on bonds.

These questions come as EM stocks have had a rollercoaster year, with valuations beaten up by concerns about China's economy, slowing global growth and lower commodity prices, just to name a few of the headwinds facing developing markets.

While the current premium on U.S. stocks makes some sense in the context of low inflation and low rates, valuations look stretched relative to stocks in the rest of the world.

The current environment of low interest rates and elevated equity valuations has many investors in a tight spot, as return expectations are lower than usual for both bonds and domestic stocks.

When rates are low, investors put more value on future earnings, and the valuation of stocks tends to rise.

The 1980 - 1982 period, where global stocks fell more modestly, can be explained by the extremely low levels of valuation during that period, unlike today's higher levels.

Deep Value investors employ a more extreme version of value investing that is characterized by holding the stocks of companies with extremely low valuation measures.

Unless the argument is that interest rates and inflation are likely to remain low for the indefinite future, it's absurd to argue that present levels of inflation and interest rates are relevant to setting the valuations of stocks.

Coupling that lower valuation on the company's earnings with the much higher current yield leads to a lot of upside, along with what could be more near - term and long - term income from the stock.

Income Value investors are similar to those in the Core Value category except they are as interested in the dividend yield as they are in the low valuation ratios of the stocks they purchase.

The Series A Preferred shall also be convertible into any future series of Preferred Stock (the «Future Preferred») under either of the following circumstances: (a) if such conversion is approved by the Board or (b) if such conversion is in connection with a future Preferred Stock equity financing in which the Company's fully diluted pre-money valuation is greater than the Company's fully diluted post-money valuation immediately following the Series A Financing contemplated by this term sheet (a «Future Financing»), in either case, on a one - for - one basis (subject to anti-dilution adjustment) at the option of the holder; provided however, if such conversion is in connection with a Future Financing, that the holder may convert into shares of Future Preferred only in the event that all of such shares of Future Preferred received by the holder upon conversion are sold to an Approved Investor (as defined below) no later than 90 days following the first closing of the Future Financing at a price per share no lower than the price per share at which the Company sells shares of such Future Preferred in the Future Financing and, provided further, that such Approved Investor is not an affiliate, family member, or related party of the holder.

Warren Buffett, the world's second - richest man, distinguishes between periods of comparatively high and low stock market valuation.

Passive investing substitutes diligence with diversification and can create a «rising tide lifts all boats» effect on the valuation of both high and low quality stocks within an index.

Not only would it be starting ahead of schedule, he argues, but even at the market lows of a year ago the stock valuations were never as low as they typically get at turning points in secular market trends.

In the early 1920s, stock market valuation was comparatively low, as measured by the inflation - adjusted present value of future dividends.

In my view, investors who view current valuations as «justified relative to interest rates» are really saying that a decade of zero total returns on stocks is perfectly adequate compensation for the risk of a 45 - 55 % market loss over the completion of the current market cycle - a decline that would historically be merely run - of - the - mill given current valuations, and that certainly can not be precluded by appealing to low interest rates.

That certainly doesn't imply that equally catastrophic losses are likely to follow (stocks lost 85 % of their value from 1929 to 1932 as valuations collapsed from historic highs to historic lows, and keep in mind that even moving from a 70 % loss to an 85 % loss involves losing half of your money, which is why I insisted on stress - testing in 2009).

We can quantify the impact that zero interest rates should have on stock valuations, and it would take decades of zero interest rate policy to justify current stock valuations on the basis of low interest rates.

It is a financial ratio used for valuation: a higher PE ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with lower PE ratio.

The average member of this group should grow by about 11 %, far lower than the most expensive stocks» 20 % growth rate, but at less than half the valuation.

But the biggest obstacle to rising bank stock valuations is the Federal Reserve System's policies of low rates and open market purchases of debt.

I've recently noticed a significant amount of mania - like behavior in which investors simply ignore valuations and it does feel like we're in the euphoric stage of the bull market in which everyone can make money from stocks and the low interest - rate environment has helped perpetuate it.

With one week left in April I decided to deploy some fresh capital into a market that has been very, very generous as of late in terms of giving us much better buying opportunities in many «name brand» stocks that have been previously deemed untouchable because of low yields, high valuations and relatively speaking, high prices.

As corporate Japan has started to take advantage of recovering risk appetite, low yields and yen strength to invest abroad, opinions on valuation of Japanese overseas acquisitions among listed firms have now begun to diverge substantially between foreign investors in listed Japanese stock and private equity / venture capitalists.

Stock markets are tumbling int he wake of the decision but given the recent strength in equities, in the face of the rising interest rate expectations, we don't expect a serious move lower after the decision, despite the valuation concerns.

The cause is always speculative distortion that was well - known for quite some time: elevated valuations, often accompanied by speculation and new issues of low - quality stocks representing some «new economy» theme, or yield - seeking speculation and heavy issuance of low quality debt.

Couple this low valuation with Glencore's smart and highly incentivized management team (the senior leaders own billions of dollars of stock and many only receive nominal salaries), and we find Glencore to be an attractive addition to the Fund.

A quantifiable response to investor's becoming less selective are the number of private companies which become attracted to the high valuations the stock markets appetite may award them with, and the lower quality threshold the stock market demands for an Initial Public Offering (IPO).

So, despite stocks being at valuation lows we hadn't seen in decades, they tempered their enthusiasm for equities because of a negative macro overlay.

To offer some insight on prospective losses over the completion of the market cycle, the following chart examines the S&P 500 stocks, and shows the median drawdown (loss to lowest point) of stocks within each valuation decile.

The demonstrations lowered the stock market valuations of politically connected firms — and showed how much people thought a full democratic revolution was possible.

You could have your $ 1 million in 35 years if you were able to earn 8 % a year, but I think that rate of return would be pushing it, given today's low interest rates and high stock valuations.

One of the great anomalies of investing: The historical long - term outperformance of certain smart beta or factor - based strategies relative to the broader equity market (think choosing stocks based on their valuations, momentum, low volatility or quality metrics such as profitability).

That washout might also serve up the best stock market bargains in many years...» (emphasis in original) Valuations are already so low that they've discussed overriding their own models but will not abandon their discipline in favor of their guts.

These questions come as EM stocks have had a rollercoaster year, with valuations beaten up by concerns about China's economy, slowing global growth and lower commodity prices, just to name a few of the headwinds facing developing markets.

The valuation elements of the score reward stocks with low price - to - book - value and price - earnings ratios.

In that sense all analysis of stock market based on historical metrics do nt make much sense since composition of stocks is entirely different in different era and as more capital efficient business model evolve and their time to market cycle shrinks stocks likely to command higher valuations and suddenly lower valuations during short period of time like already happening for many technology companies and as influence of technology on overall cost structure of companies increases (for example: robotics replace many of employees cost etc) valuation matrix of most companies likely to get affected dynamically in short duration of time than in the past.

Investors don't typically wait for high levels of inflation before adjusting stock valuation multiples lower.

Periods of low volatility often coincide with higher levels of valuation, and that sort of low economic variability can help to generate stock market bubbles.

The argument for keeping it high is a relatively low valuation of foreign stocks compared to domestic ones:

Vertical factor: spread of Baa bond yields over Aaa bond yields — Hypothesis: When spreads are high, stock valuations tend to be low.